At least one organization is calling the bottom for bitcoin – for now. The implication here, is that bitcoin will surge to $20,000 per coin (or more).
Frank Holmes, contributor for Forbes, was the source for this. He cited material from Fundstrat research. Of course, Fundstrat was founded by Tom Lee, a former JP Morgan employee. But – according to the write up about Tom, he’s been very accurate with predictions.
Here’s a video of Tom a few months back. Suffice to say, he then saw the Bitcoin and Ethereum would be major players. He also sees a negative correlation with bitcoin and gold, but little to none with certain major market indicators. His idea that millennials might switch to or use bitcoin as a type of asset, is also interesting.
Of course, the above video was dated before the recent news that the Bitcoin blockchain was shown to have links to certain illegal websites – akin to someone writing a website address on a dollar. The dollar still spends, but nobody wants that garbage on their bitcoin. Too bad there’s no editing function for extraneous nonsense on the BTC blockchain. Sort of a bitcoin laundry.
Is bitcoin really eating 5% of Gold’s lunch as Tom implies? It’s certainly food for thought. For all the negatives about bitcoin of late, maybe it really is a fait accompli. The only thing left is time.
Tom also gave an example. If new automobile manufacturing plant opened in a rural area, it would take time for the infrastructure to build up around it. Same with bitcoin.
There was little mention of other cryptocurrencies, such as Ripple, but Tom felt that eventually, only few big players – bitcoin being one – would eventually rule the roost. This same type of sentiment is often echoed throughout the crypto-sphere. My rejoinder would be: how few? And what kind of blockchain or non-blockchain system? Alas, that crystal ball is not available.
Now, this Bitcoin prediction was made as it was dropping in price. Not when it was soaring. Personally, I saw a bottom on/about February 6, 2018. I posted that previously.
But let’s suppose for a moment that Bitcoin surged again. It headed north of $20,000. What could that mean for Ethereum and Ripple, for example?
In my opinion, Ethereum would surge to about $1,400. Ripple, $4.00.
Why do I say this? Because cryptocurrencies are generally positively correlated. When Bitcoin rises, nearly all other cryptocurrencies do the same.
But will Bitcoin now die because of it’s alleged connection with child pornography? This WIRED story doesn’t think so. On the other hand, the article does not leave one with a sense of hope. It does the opposite. It tells me that Bitcoin is doomed or at least stunted unless it can edit that content out in some fashion.
It’s the reasonable person standard. Would a reasonable person care that he/she just downloaded hundreds of child porn links with the blockchain? Answer: yes. I don’t care how you rationalize it away. You now have links to criminal websites, period.
“Wait a minute, didn’t you know Bitcoin had child porn links on its blockchain?”
“But officer, I don’t intend to use the links!”
“Explain that to the judge.”
“But everybody does it!” you yell.
This one problem, shows the underlying weakness with certain blockchain technologies. A few bad apples can spoil the barrel. It reminds me of cloned (grafted) fruit trees. One disease kills the entire grove — and beyond.
In the event, however unlikely, that Bitcoin collapses, would this then spell disaster for Ethereum? Much has been discussed about this since ETH can also be subject to unwanted information.
Will this backlash – Bitcoin Gate – spell doom for any ledger-based system — where anyone can edit content? And surge the values of the non-editable systems, like say Ripple – until, like I mentioned, bitcoin and bitcoin-like systems can be ‘cleansed?’
To layer this bad news, we need only look to China. Their National Bank is now going after cryptocurrencies, in earnest.
And can we really see valid cryptocurrency trends via Google any longer? After all, they, like many others companies, are essentially jettisoning Bitcoin and similar. Hence the uncensored search engines would have more accurate cryptocurrency trend indicators …eventually.